U.S.-based Internet firms Facebook and Yahoo have agreed to settle a patent dispute and are planning to form a web advertising alliance, according to a report.
The companies said they would work together to bring advertisers new ways to promote their products across Yahoo and Facebook’s websites.
According to a statement, the settlement includes a cross-license agreement, the Telegraph reports.
Yahoo filed the original patent lawsuit under the leadership of Scott Thompson, who resigned as chief executive officer in May.
In the March lawsuit, Yahoo alleged that Facebook infringes patents covering such functions as internet privacy, advertising and information sharing.
Facebook, the largest social-networking service, countersued in April, accusing Yahoo of infringement.
According to people familiar with the matter, Ross Levinsohn, who stepped in as interim chief executive after Thompson’s departure, helped work out the terms, and settled the legal dispute between the two firms.
Sheryl Sandberg, Facebook’s chief operating officer, said in the statement that ‘we were able to resolve this in a positive manner and look forward to partnering closely with Ross and the leadership at Yahoo.’